Japan December Spot LNG Teases 3-year High
Average price of spot LNG contracted in Dec was $10.20/mmBtu.
Prices for liquefied natural gas (LNGLF) (LNG) spot cargoes for Japan, the world's top buyer, rose to their highest in nearly three years in December, official data showed on Monday, in line with firm spot prices in the region.
The average contract price for spot liquefied natural gas (LNG) cargoes for shipment to Japan last month was $10.20 per million British thermal units (mmBtu), up $1.20 from the previous month, preliminary data from the Ministry of Economy, Trade and Industry (METI) showed.
That marked the highest since January 2015. The average price of spot LNG cargoes that arrived in Japan last month was $8.10 per mmBtu.
The prices were in line with strong Asian spot prices, which stood above three-year highs of $11.20 per mmBtu by late December as cold temperatures across Japan and continued strong demand from Chinese importers buoyed the market.
METI surveys spot LNG cargoes bought by Japanese utilities and other importers, but excludes cargo-by-cargo deals linked to benchmarks such as the U.S. natural gas Henry Hub index.
It only publishes a price if there is a minimum of two eligible cargoes reported by buyers. The following table lists the monthly average prices in mmBtu for contracted and arriving spot LNG cargoes. Prices are converted to delivery on an ex-ship basis.
